31 October 2019
QUARTERLY ACTIVITIES REPORT
PERIOD ENDED 30 SEPTEMBER 2019
The September Quarter was transformative for Metgasco as the company secured a basin entry exploration farm-in option for up-to two shallow wells in the L14 production licence near successful producing oil fields in the onshore Perth Basin. The first exploration prospect Cervantes, planned for drilling in Q32020, is one of the largest undrilled onshore oil prospects in the Perth Basin. Metgasco also completed two successful farm-out deals on Cooper/Eromanga Licence ATP2021 delivering a free carry of the highly prospective Vali-1 gas prospect which is planned to start drilling in December 2019.
Key activities during the quarter ended 30 September 2019 (“Quarter”) comprised:
- On 2 July Metgasco Ltd (ASX: MEL) (“Metgasco” or the “Company”) executed a Farm-out agreement including a Joint Operating Agreement (JOA) with Vintage Energy Ltd (ASX:VEN) (“Vintage”) over ATP2021 in the Cooper Basin;
- On 5 July Byron Energy’s Limited (ASX:BYE) (“Byron”) SM74 D14 BP1 exploration well was drilled to a total depth of 14,933 Measured Depth, having logged wet sands in the primary objectives and failing to identify commercial quantities of hydrocarbons it was decided to plug and abandon the well. On 18 July Metgasco finalised cost exposure to the SM74 drilling program by reaching a commercial agreement with Byron;
- On 15 July Metgasco received an unsolicited, conditional takeover offer from Melbana Energy Limited (ASX:MAY) (“Melbana”). Melbana issued a bidder’s statement on 10 September;
- On 29 August Metgasco executed a binding Farm-out agreement with Bridgeport (Cooper Basin) Pty Ltd (“Bridgeport”) for a further 25% of ATP2021, retaining a 25% non-operated interest;
- On 9 September the Company executed a binding Farm-In agreement with Jade Energy Holdings’ subsidiary RCMA Australia Pty Ltd (“Jade”) in respect of the L14 production licence (“L14”) located in the northern onshore Perth Basin, South West of the producing Jingemia oil field;
- On 18 September the Company disposed of 8 million Byron shares, realising approximately $2.72 million. Funds raised were applied to discharge the residual SM74 $1.75 million debt and to general working capital purposes;
- Prospective resources attributed to ATP2021 Vali were significantly increased by Vintage following sub-surface work and a letter of intent for a rig to drill Vali-1 was signed.
Please click on the attached .pdfs to view the full report and the Quarterly Cashflow Report Appendix 5B.
Philip Amery, Chairman
Phone: +61 02 9923 9100